Demonetisation: USSD technology to pay digitally without internet

Cashless after demonetization but finding it difficult to pay digitally due to poor or no internet connectivity? USSD technology is the solution for you. Here's what it is and how you can use it. However, this payment method can be used only for small value transactions up to Rs 5000 as per RBI guidelines.

National Unified USSD Platform or NUUP is a mobile banking service based on USSD. USSD refers to unstructured supplementary service data. Simply put, it's a technology that transmits information through GSM network channels - these channels are normally used for voice calls via your phone. USSD technology facilitates sessions of communication that can be used in various areas of life including banking. Herein, your telecom operator and bank will become parties with whom communication takes place via USSD. According to Mr. AP Hota, MD and CEO of National Payments Corporation of India, "this service is available on every phone where an SMS can be sent, be it smartphones or feature phone."

How USSD technology can be used in mobile bankingThis USSD-based communication can be used for checking your account balance, generating mini statement, fund transfer via MMID (a code allotted by banks on mobile banking registration), IFSC code or Aadhaar number.Some of the other services that NUUP offers are generating OTPs, M-PIN, and VAS such as query service on Aadhaar mapper which checks the seeding status of your Aadhaar with your bank account.

USSD transactions cannot be cancelledIt is important to remember that NUUP uses IMPS platform for fund transfer, which is an immediate transfer service, so once a transaction is initiated it cannot be stopped or cancelled. This is unlike an online transaction done via a laptop or mobile where it can be cancelled after initiation.

It is expected to expand financial inclusionAccording to National Payments Corporation of India or NPCI, NUUP is an "additional channel for banking and a key catalyst for expanding financial inclusion" as low income groups with no smart phones can also easily use this service. Keeping the same in mind, this service is made available in 12 languages. Short codes for accessing regional languages for NUUP are as follows -

Source: NPCI

You must be registered for mobile banking to use USSD for this purposeYou should be registered for mobile banking to access this facility. The same is not mandatory for the beneficiary. Next, you just need to type in *99# (for English language) from your mobile phone. This USSD code is common across all telecom operators. There is no need to install any separate application for this, although alternative to install apps and access banking services offline by some banks such as Punjab National Bank and Bank of Baroda is also available on Google Play Store.

Fund transfer processThe whole process of fund transfer is explained below.Click here to get 2-digit numeric code and IFSC code of your bank for this service.

Charges for using this payment method & transaction limitPlease note, your telecom operator will charge some minimal fees on the same. This fee will be charged even if your transaction doesn't go through, although there are no additional charges in case of roaming. The fee may vary depending on your TSP (telecom service provider), but TRAI has capped it at Rs. 1.50 per transaction which will be added to your mobile bill. According to Mr. Hota, "this charge is one of the reasons why this project has not taken up, even after 3 years of its launch. Anytime the customer uses this service, whether the transaction is completed or not, the customer is charged. This is very discouraging." There is also a transaction limit of Rs. 5000, set by RBI, which is enough for day-to-day requirements until this cash crunch is resolved.

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